NAHB Releases Building Permit Statistics

The National Association of Homebuilder has released statistics on the number of building permits which have been issued for either single family new construction or multi-family new construction through June of 2008.

For the Catawba Valley region of Hickory, Lenoir, & Morganton the news isn’t surprising to those who have been watching the trends in the market. The number of building permits issued has dropped by 44 percent compared to same amount of time last year. By June of 2007, 904 building permits had been issued for single family homes. Only 510 have been issued through June of 2008. Through June of 2007, 62 permits had been issued for multi-family dwellings. Only 31 have been issued so far this year, which was you know is a 50 percent decline.

Throughout all of North Carolina, the number of building permits issued for single family homes declined by 38 percent, and the number issued for multi-family dwellings declined by 32 percent, which means that this region has seen a slightly higher decline than the state average. The overall decline for the entire US is 41 percent and 7 percent for single family dwellings and multi-family dwellings, respectively.

For statistics for the entire US broken down by state and region, please click here. You can then scroll to NC’s statistics.

The big question is what does this mean for those looking for new construction in the Catawba Valley area. Well, the positive side is that we have a great selection of new construction with a good mix throughout most of the price ranges. Second, builders have started putting their best foot forward, to say, with their products. Meaning they are building on their best lots to make the most attractive house site. Third, you may be able to negotiate a little more now than before. You have to be careful with this, however, because the number of starts has declined, builders know that you have less selection, if you are exclusively looking for new construction, so don’t be too surprised if they hold their ground.

On the negative side, this means that some in our economy are hurting financially because their income relies on the construction industry: carpenters, electricians, plumbers, and the like have less work, which means more of our neighbors are having a more difficult time, but it also means that their schedules are more open to help you with repairs and additions to your existing home, if you are thinking of selling. Another unfortunate result is that there are less builders. Some builders have had to leave the industry in search of another type of work because of the slowdown, which means you have less selection than when the market had more builders.

Overall, however, I think it is a good time to consider new construction. As I said, we have an excellent selection in the region, which you can see a couple of posts back, as I posted links to new construction by county. If you have an insight, please leave a comment, or if you have a question, you can call me or e-mail me at jgriffin@bengriffin.com